The Bank of England cut the base rate - which underpins many savings and borrowing rates - from 0.5% to 0.25% last week after seven years of no change. It also hinted the rate may fall again this year and cut its growth forecast for the UK economy.

Whatever the future, it's vital you take charge of your money NOW. Sadly, dire savings rates will get worse - yet decent returns are possible on non-standard savings deals. On mortgages, some rates will fall but don't automatically stay put. Here's the lowdown.

Earn 24 times the base rate - up to 6% savings

Savings rates are likely to be slashed en masse other than existing fixed rates - see our bank-by-bank breakdown of cuts. So it's the PERFECT trigger time to ditch poor-paying accounts.

Our savings fountain explains which type of account is best for you, if new to savings. If you know what you want, we've the top deals below (all have UK savings protection). Be warned: banks could chop rates on ANY account, so double-check before applying, and be prepared to switch again if variable rates dive later:



Earn 5% via current accounts. These smash easy-access savings and 76% in our July Twitter poll said switching bank was hassle-free. The competition regulator yesterday announced plans to aid switching, such as personalised comparisons, but that's years off so don't wait - there are plenty of good deals NOW. Rates below are variable so aren't immune from cuts, unless stated.

- Bigger savers can earn 3%: Santander 123* pays 3% AER if you've £3k to £20k. Its £5/mth fee is covered for most by up-to-3% bills cashback (min £500/mth pay-in).
Couples can have three accounts covering £60k (one each & a joint). If Santander cuts the rate (it's "under review"), see if Santander 123 would still be worth it.

- Up to 5% for smaller savings: TSB* pays 5% AER on up to £2k, plus you can get up to £5/mth cashback on contactless card spending (£500/mth pay-in). Nationwide FlexDirect* is 5% AER fixed for a year on up to £2,500, 1% AER variable after (£1,000/mth pay-in), while Club Lloyds pays 4% AER on £4k to £5k (£1,500/mth pay-in).

Earn up to 6% with regular savings. They pay high interest but on small sums, usually for a short time, though you must meet min & max monthly deposits. Rates are fixed for a year, so are immune from cuts once you've got the account, unless stated.
- Top payers are 'bank-linked': You need a specific current account for them - luckily these tend to be best buys. First Direct's current account gives switchers £100 and is no.1 for service, plus its linked regular saver lets you save up to £300 a month at 6% fixed.
Others are M&S Bank (6%) and Nationwide (5%, though this is variable).

Help to Buy ISAs: Up to £3k FREE for first-time buyers. If you're 16+ and have never owned a home and may want to, they're usually a no-brainer. Open-to-all accounts pay up to 2.5% interest and 25% is added by the state, up to £3k, if used towards a deposit on homes up to £250k (£450k in London). While the rate is variable, the bonus percentage and cap is fixed. Full info: Help to Buy ISAs.

Some will see mortgages get cheaper after the base rate cut.
Whatever the impact, if coming to the end of your fix or tracker, pounce on a new deal as your rate will likely rocket soon - you can usually do this three months ahead. If looking for a new deal, whatever the reason, see our Remortgage PDF Guide or First-time Buyers' PDF Guide for help, plus our Mortgage Best-Buys Comparison for the top deals.



Fixes are fixed - check if you'll save ditching yours. They account for half of mortgages, and as the name suggests, rates WON'T change during the fixed period.
That doesn't mean do nothing.

Use our Ditch your fix? tool to check if you can save by switching from a pricey fix. For example, if you've a 3.49% fix with 23mths left on a £100,000 mortgage, you could save if you can switch to anything better than a 1.51% fix with a £1,000 arrangement fee, even taking into account £2,800ish extra switching fees. It won't work for all, so check via the tool.



Will your lender cut your standard variable rate (SVR) or 'discount'? These move at lenders' whim as they're not directly linked to base rate. See our lender-by-lender update on which have announced cuts - sadly, only half have so far confirmed plans, we'll update the list as we know more.

SVRs, which average 4.8%, are pricey, so don't automatically stick even if your rate is cut. You'll usually be on an SVR when your fix or tracker ends. A 'discount' follows the SVR at a set rate, eg, if the SVR is 4% and the rate is SVR minus 1%, it's 3%. See SVR Help.



Check when your tracker will fall. These 'track' the base rate, so for the 1.5 million on them, mortgage costs should drop by an average £20/mth on a typical £150k mortgage. See our lender-by-lender update for when each plans to cut the rate. Most will be from Sept but some, such as Virgin, will make customers wait till Oct.

A tiny number won't see rates drop where their deal has what's called a 'collar', which prevents rates falling below a certain level. You should be contacted by your lender if you're impacted.



I'm looking for a mortgage - should I wait for cuts? Rates could fall a touch, though the Bank of Eng expects any will be limited.

Our message for months has been mortgage rates are ultra-low already. That hasn't changed, so why wait, especially if you've an offer? Also, if buying a new home, you risk losing it by dallying.

To highlight the low rates, HSBC launched a 0.99% two-year fix in June, with a £1,499 fee if you've a 65% deposit/equity. It's still here and is as low as we've seen.



More mortgage tips and calcs. You need a good credit history (see Boost Your Credit Score Tips) to get most mortgages and typically a deposit or equity of at least 60% of the value for the best, and 5% for anything at all. Also try our Ultimate Mortgage Calc, incl...

Should I buy holiday money now?
The cut led to the pound falling in value, so you'll get fewer euros/dollars etc. Just before the base rate announcement, at 11.40am on Thu, £1 bought 1.19 and $1.33. At 5pm yesterday £1 bought 1.17 and $1.30. No one knows how currencies will move but we've a trick to protect against swings.

Will cheapest-ever loan rates fall further? If you have one, your rate is almost certainly fixed. For new loans, rates from 3.2% are already at record lows, driven by strong competition. So there's not much further to drop, and as with mortgages, there may be little point waiting.

If you're looking for a loan, all providers credit-score you, so use our free Loans Eligibility Calc to find which you've the best chance of getting and see our Cheap Loans guide for the top deals.

Will it affect my student loan? If you started uni from 1998-2011 in Eng and Wales, or any time from 1998 in Scot or NI, it's likely your interest rate will rise in Sep to 1.25% from 0.9% (it would likely have been 1.5% without the rate cut). See Student Loan Help.

Q.

Should I pay off debt instead of saving? With savings rates at all-time lows, those with debts AND savings could consider paying debt off with savings where the debt interest is higher than the after-tax savings rate. Full pros and cons in repay debts with savings.

PS from Martin: After 13yrs writing this email, I'm taking a month's sabbatical - to have fun and be a husband & daddy. So this August the email's in the very talented hands of the MSE team.

We boosted our Balance Transfer Eligibility Calc earlier this year so you could see on a few MBNA cards if you've a '100% chance' of getting them (subject to ID/fraud checks). Now we've gone further as you can be pre-approved for most Virgin Money cards too - and it has the longest 0% balance transfer card, at 41mths.

A balance transfer pays off existing credit and store cards, so you owe it instead, but at 0%. Repayments clear the debt rather than just paying interest, so you're debt-free quicker.
What is our eligibility calc? Applying marks your credit file, so to avoid this, our eligibility calc shows which you've best odds of getting, letting you minimise applications.

Tip 1: Go for the lowest fee in the time you're sure you can repay. Most 0% cards charge a fee to transfer your balance, eg, 4% is £40 per £1,000 shifted. So calculate how long you'll take to clear the debt, add a bit for safety, then pick the lowest fee within that time. Unsure? Play safe and go long, even with a bigger fee.

Tip 2: Some are 'up to' 0%s, so you may get a shorter deal. That's why we include the best non 'up-to' options. If the eligibility calc suggests you've good odds of getting these, unlike the 'up-tos', you know what you'll get.

Balance Transfer Golden Rules. Full help, get cashback & ALL best buys: Balance Transfers (APR Examples).
a) Never miss the min-monthly repayment, or you could lose the 0% deal and it'll cost far more.
b) Clear the card or balance-transfer again before the 0% ends, or the rate rockets to the higher APR.
c) Don't spend/withdraw cash on these. It usually isn't at the cheap rate and cash withdrawals hit your credit file.

PS. You can now be pre-approved for Aqua cards too, but none of its cards are for debt-shifters.

However you look at it, car insurance costs are up - by a whopping 17% on last year, the AA says (it also predicts they'll keep rising); or 10%, according to the Association of British Insurers trade body. But our system can help slash costs, as Sue found: "Last year I paid £258 car insurance. Renewal quote was £608 - I've paid £199 using your process. Thanks." See full info in Cheap Car Insurance, but to drive the points home...

You can cut costs now, even if not at renewal. There are two elements to this:
i) Renewal within 60 days? Some firms' quotes are valid for 60 days, so if prices rise you're covered. These include Aviva*, Nationwide & LV* (see 20 long quote insurers). Dimuthu tweeted: "Renewal £521. Quote a month ago, which was honoured, of £319. Thanks." Get quotes now, then check against others at renewal.

ii) Can you slash costs mid-policy? Use the info below to find your cheapest insurance. If it's much cheaper than now & you haven't claimed, for a £50-ish admin fee you can usually cancel your policy and get the rest of the year refunded (though you won't earn that year's no-claims bonus), locking in today's price. See full switching mid-policy info. Andy tweeted: "You gave us confidence to change mid-policy - it was £40/mth, now £16".

Don't want to switch insurer? Haggle. This works best at renewal. Simply find the best price you can, then ask your provider to beat or match it. Nick tweeted: "Car insurance renewal letter says £397, comparison site best price £193 with same company. It matched. Result."

SUCCESS OF THE WEEK: (Send us yours on this or any topic)"After seeing your email last week, I used your Easyjet refund trick for flights to Menorca. We managed to get an £803 voucher, all
thanks to your website."

This week alone, MoneySavers in our forum have won £4,500-worth of caravan accessories, £1,000 in cash and a Greek island holiday. It's all about 'comping', a potentially profitable hobby. See 44 Comping Tips - here's some winspiration:

100s of competitions in one place. It's not just about entering the odd contest, it's a systematic way of sourcing and entering loads of the right ones. In the MSE comping forum board compers post hundreds of contests, enter others' competitions and cheer when people win, bringing the hobby to life.

Another HUGE comping win. While big success isn't certain, it happens - as forumite Nettie17 found two weeks ago: "I had a call from Capital FM to tell me I'd won a trip to the Olympics, with £2,000 spending money". Read the full story and heart-warming congrats that followed.

Should you be allowed to switch water company? Your supplier's currently decided by where you live, but regulator Ofwat's considering the costs and benefits of letting you switch - like with gas and electricity. It could mean combined energy and water bills, and cut costs. Feed back to Ofwat in the MSE forum - it'll present your views to the Government later this year.

THIS WEEK'S POLL

The MoneySavingExpert Annual Census. It's time for the MoneySavingExpert.com annual census. Find out who uses the UK's biggest consumer site - and what reality TV show they'd most like to star in.

First Direct keeps its customer service crown. The results of our biannual banking poll from last week are in, with First Direct remaining solidly in first place - a whopping 91% of its customers who voted said it's 'great' for service. Barclays had the highest proportion of its customers calling it 'poor' at 21%. Full ratings in our bank poll results.

Q: I've been awarded £649 compensation for a delayed flight with Thomas Cook but it offered this in vouchers, with a time limit. How do I change this to money in my bank? Steve, via email.

MSE Megan's A: You simply need to tell it you want the compensation to be paid as cash. Under EU law 261/2004, which governs flight delay compensation, the airline can only pay you vouchers if you have signed an agreement to say so. Otherwise it must be by bank transfer or cheque.

If you haven't signed anything to say you will accept the compensation as vouchers, write back and say how you would like the money to be paid instead. For further help and info, see our Flight Delays guide.

That's it for this week, but before we go, check out this thread from the forum: Forums or Fora? Pronunciation and plurals have long led to many a debate, with jazz legend Ella Fitzgerald even singing about potatoes and potahtoes. Martin himself was recently presented with such a quandary, when he was told it's not 'forums', but 'fora'. We'd like to put this to the test - with none other than our beloved MSE forumites.

We think it's important you understand the strengths and limitations of this email and the site. We're a journalistic website, and aim to provide the best MoneySaving guides, tips, tools and techniques - but can't promise to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong.

What you need to know

This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances - and remember we focus on rates not service.

We don't as a general policy investigate the solvency of companies mentioned, how likely they are to go bust, but there is a risk any company can struggle and it's rarely made public until it's too late (see the Section 75 guide for protection tips).

We often link to other websites, but can't be responsible for their content.

Always remember anyone can post on the MSE forums, so it can be very different from our opinion.

More about MoneySavingExpert and Martin Lewis

What is MoneySavingExpert.com?Founded in February 2003, it's now the UK's biggest consumer help website with more than 10 million people getting this email and about 13 million using the site every month. In September 2012 it became part of the MoneySupermarket Group PLC. Its focus is simple: saving cash and fighting for financial justice on anything and everything. The site has over 80 full time staff, more than a third of whom are editorial - researching, analysing and writing to continually find ways to save money. More info: See About MSE.

Who is Martin Lewis?Martin set up and runs MSE, and still writes this email each week (unless it says so). He's an ultra-focused money-saving journalist and consumer campaigner with his own ITV prime-time show The Martin Lewis Money Show and weekly slots on Radio 5 Live, This Morning and Good Morning Britain, among others. He's a columnist for publications including the Telegraph, Sunday Mirror and Woman magazine. More info: See Martin Lewis' biography.

What do the links with an * mean?

Any links with an * by them are affiliated, which means get a product via this link and a contribution may be made to MoneySavingExpert.com, which helps it stay free to use. You shouldn't notice any difference; the links don't impact the products at all and the editorial line (the things we write) isn't changed due to them. If it isn't possible to get an affiliate link for the best product, it's still included in the same way. More info: See How This Site is Financed.

As we believe transparency is important, we're including the following 'un-affiliated' web-addresses for content too:

Where we feature insurance products, referring people to insurers or insurance intermediaries can in some circumstances constitute an FCA regulated activity. For this reason, pages with links which take you to the sites of insurers or insurance intermediaries are hosted by MoneySavingExpert.comLimited on behalf of MoneySupermarket.comGroup PLC.

It's also worth knowing that MoneySupermarket.com Financial Group Limited is authorised and regulated by the Financial Conduct Authority (FRN: 303190). The registered office address of both MoneySupermarket.com Group PLC and MoneySupermarket.com Financial Group Limited (registered in England No. 3157344) is MoneySupermarket House, St. David's Park, Ewloe, Chester, CH5 3UZ. Telephone 01244 665700. MoneySavingExpert.com Limited is an appointed representative of MoneySupermarket.com Financial Group Limited.

How this site works

We think it's important you understand the strengths and limitations of the site. We're a journalistic website and aim to provide the best MoneySaving guides, tips, tools and techniques, but can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong.

This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service.

Do note, while we always aim to give you accurate product info at the point of publication, unfortunately price and terms of products and deals can always be changed by the provider afterwards, so double check first.

We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the Section 75 guide for protection tips).

We often link to other websites, but we can't be responsible for their content.

Always remember anyone can post on the MSE forums, so it can be very different from our opinion.

MoneySavingExpert.com is part of the MoneySupermarket Group, but is entirely editorially independent. Its stance of putting consumers first is protected and enshrined in the legally-binding MSE Editorial Code.